NOTE 07
EQUITY
(CONTINUED)
(i) Asset revaluation reserve
The property, plant and equipment revaluation reserve is used to record increments and decrements
on the revaluation of infrastructure assets.
(ii) Profit reserve
The profit reserve is used to preserve current profits for the purpose of paying dividends in future years.
(iii) Hedge reserve - cash flow hedges
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of
cash flow hedging instruments related to hedged transactions that have not yet occurred. Amounts are
reclassified to the consolidated income statement when the associated hedged transaction settles.
(c) Retained earnings
Movements in retained earnings were as follows:
Consolidated
2015
$’000
2014
$’000
Balance at 1 July
(134,883)
(133,493)
Net profit/(loss) for the year after tax
134,598
163,643
Re-measurement gains/(losses) on defined benefit plans
5,254
(2,145)
Asset revaluation reserve - asset disposal
-
111
Tax effect on defined benefit fund (note 6(d)(i))
(1,576)
644
Transfer to profit reserve
(134,598)
(163,643)
Balance as at 30 June
(131,205)
(134,883)
85
